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The Next Generation of Apple Pay

The launch date of so-called Apple Pay 2.0 hasn’t even been announced yet, but investment firm Jefferies is already touting the upgrade as one chock-full of upgrades that are likely to get consumers very, very excited.

According to Jefferies senior analyst Jason Kupferberg, the new version of Apple Pay includes features like browser-based payments to facilitate business for international merchants as well as a new rewards program for individuals using Apple Pay.

Reports also said that Apple Pay will likely see at least a 1 percent increase in earnings per share due to the upgrades, which provide an all-around boost to the Apple Pay business model. The research note released by Jefferies considers Apple Pay 2.0 to be a crucial update to the service considering the incoming competition from rivals. Google, for example, recently acquired Softcard; that will lead to Google Wallet coming preloaded on Android smartphones through T-Mobile, Verizon and AT&T.

According to Kupferberg, another major competitor could arise from a potential merger between Paydiant and PayPal, which is rumored to be exploring the expansion of its own mobile payment service. MCX, the shorthand for Merchant Customer Exchange, however, is struggling before it’s even truly entered the market. Just one day after MCX co-founder Best Buy announced plans to accept rival Apple Pay, MCX announced that its CEO Dekkers Davidson would step down.

Samsung is similarly developing its mobile payment software, known as Samsung Pay. While Samsung reported less-than-stellar quarterly earnings late last month, the company’s new Galaxy S6 Edge smartphone is flying off shelves and Samsung Pay is reportedly still on track, though the company declined to elaborate on any recent updates Samsung has made to gear up for the launch of Samsung Pay.

Samsung VP of mobile communications JinYoung Park, however, did give some insight into where Samsung Pay will be launched. “In terms of our plans,” he said, “we are planning to launch Samsung Pay in Korea and in the U.S. during the second half of this year. We are currently considering the rollout to other countries going forward.”

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Latest Insights: 

The Which Apps Do They Want Study analyzes survey data collected from 1,045 American consumers to learn how they use merchant apps to enhance in-store shopping experiences, and their interest in downloading more in the future. Our research covered consumers’ usage of in-app features like loyalty and rewards offerings and in-store navigation, helping to assess how merchants can design apps to distinguish themselves from competitors.

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